The US Supreme Court’s rejection of Donald Trump’s reciprocal tariffs marks a game-changer for Indo-US trade. Analysts forecast a sharp decline in duties on 55 percent of Indian exports, settling at MFN levels of 2.8 to 3.3 percent.
At the heart of the dispute was the IEEPA, which the court ruled does not permit sweeping ‘tit-for-tat’ duties. This affects the lion’s share of India’s US exports, previously burdened by escalated rates.
MFN tariffs, as WTO-mandated baselines, now take precedence. Averaging low single digits across categories from chemicals to machinery, they align with commitments to fellow members like India.
Chief Justice John Roberts’ opinion was unequivocal: the president cannot invoke emergency powers for indefinite, borderless tariffs without congressional backing. The decision preserves alternative legal avenues but demands procedural rigor.
Trump hit back, decrying judicial interference from shadowy international actors. Meanwhile, a 10 percent interim tariff lingers on Indian goods per recent White House directives, hinting at escalation.
Strategically, experts advise India to revisit bilateral agreements. This ruling bolsters exporter confidence, potentially spurring volumes in high-stakes areas like IT hardware and apparel.
In broader terms, the verdict champions multilateral trade norms, challenging protectionist impulses and signaling hope for equitable global commerce.